Over the years we’ve helped many businesses to overcome their cashflow issues, we’ve shared our top 10 tips and answered 7 frequently asked questions about cashflow management. Having a healthy cashflow is important to the life of any business, and often is the reason why businesses fail, because they have failed to plan and manage their cash flow effectively.
Fear not though, if your cashflow is looking a little sad there are a range of options out there to help you look after your cashflow to get it looking healthy again. Whether this is from purchasing items for your business or from the day to day running, these finance options can help you. And best of all these options can be used alongside one another to ensure that your cashflow is always looking tip top.
Asset Finance –
Asset finance allows you to purchase the assets you need while paying back manageable monthly instalments. It enables you to invest in your business without having to use existing cash or using an overdraft. Asset Finance is great to use even when you have the money to make a purchase, as it enables you to spread the cost leaving you with money in the business to use for growth. Pay for the assets with the cash flow generated by using them and keep your cash flow healthy.
Stock Finance –
Stock finance is a way of releasing the cash tied up in your warehouse. This flexible and affordable product is great to keep your cashflow healthy. Release the cash tied up in your stock and raise additional funds for your business. Stock finance enables businesses to get finance to aid in the purchase of more stock or to free up working capital in already existing stock. If you have large amounts of stock in your warehouse, stock finance can help you.
Read more about Stock Finance
VAT Funding –
When the VAT Bill comes in it can leave your cashflow looking a bit worse for wear. Paying the bill in one lump sum can be a lot of money to leave your account all at once, but what if we told you that you could get Vat Funding to help you spread the cost! Vat Funding allows any business with a minimum VAT bill of £10,000 to spread the cost over 3 months with a fixed rate of 3.9%. This approach means that you have manageable monthly payments to make instead of one large one, leaving you in a better position with your cashflow.
Read more about VAT Funding here.
Invoice Finance –
A lot of businesses have cashflow issues as a result of unpaid Invoices. An invoice finance facility stops you having to wait 30 days to get hands on your cash, you can get up to 85% of the value of your invoices on day 1. The great thing about invoice finance is that the provider of the facility will then chase the debt, so not only is it helping your cashflow but giving you more time to focus on what you do best! Invoice finance gives you an immediate cash injection and then an ongoing supply of funds into the business based on your level of sales.
Read more about Invoice Finance here.